Stage clothes – Clothes that you only wear on stage can be claimed for 100% of the cost

· Ordinary clothes – As highlighted above, this is a grey area, but the official line is, “the cost of ordinary every day clothing is not allowable – even if it is bought specially for business use”

· Footwear – The same rules apply as with clothes

· Overnight accommodation – Where the trip necessitates one or more nights away from home the hotel accommodation and reasonable costs of overnight subsistence are deductible. The costs of lunches are not normally allowable, unless you are travelling on business (for example, you are on a train from London to Edinburgh) in which case modest expenses may be deducted.

· Travel – Travel to and from a regular gig at a regular venue will not usually be classed as business mileage for tax purposes. The reason for this is that the inspector will say that as you are at the venue so often, your trade is carried on from there, and not from home. You will have to convince him that although you do this gig quite a lot, your business as a musician is based at home. The best way of doing this is to show that you have other gigs elsewhere.

· Bad or doubtful debts – i.e. if you agree to do a gig but never get paid for it, after all reasonable attempts at recovery, your profit for that year is reduced by that amount, if you calculated income on an invoice, not cash basis

· Contact lenses - Where required for reading music, although this may be challenged

· Some dental work – e.g. cosmetic or remedial (as with brass/woodwind players). Again this is likely to be challenged.

· Gifts advertising your services – e.g. pens, diaries, calendars, matches, etc. The cost of each must not exceed £50, as the whole amount will be disallowed. Gifts of food and drink are not deductible.

· CD/DVD/MP3 player – You may have to convince the taxman that you need to use these items of equipment “...for the purpose of trade....”, e.g. to learn new pieces of music. He will, however, almost certainly only allow you a part of the cost for business.

· CDs/DVDs/MP3s – Again, you will probably have to argue with the taxman over the allowable amount. Don’t be frightened to argue, but don’t be too greedy.

· Professional subscriptions – Annual subscriptions of a professional nature. (See later item referring to the Musicians’ Union.)

Wages – e.g. to road crew, secretary etc. If you start paying wages to anyone on more than a strictly freelance basis you are going to become involved with starting a full PAYE scheme and deducting tax and National Insurance contributions and so professional advice should be sought.

MU Subscriptions – allowable deduction?

A number of reports have been received of musicians who are self employed, and classed as such for HMRC purposes, having difficulties in off-setting their MU subscriptions against their taxable income. We understand that some local tax inspectors are quoting Section 343 ITEPA as the reason for this decision. This section is inappropriate, for whilst it severely restricts the fees and subscriptions that can be claimed, it relates only to employed persons taxable as employees. The employed person will need to show that it was necessary to incur this expenditure to carry on his/her employment. Self employed musicians are not covered by this category and should continue to claim their subscriptions as before, and will need to show that this expenditure was wholly and exclusively incurred for business use.